Berkshire Hathaway Inc. (BRK.B - Free Report) closed the most recent trading day at $213.17, moving -0.4% from the previous trading session. This move lagged the S&P 500's daily gain of 0.23%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Prior to today's trading, shares of the company had gained 4.62% over the past month. This has outpaced the Finance sector's gain of 2.82% and the S&P 500's gain of 3.84% in that time.
Investors will be hoping for strength from BRK.B as it approaches its next earnings release. The company is expected to report EPS of $2.71, down 2.87% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.53 per share and revenue of $275.35 billion. These totals would mark changes of +4.78% and +11.1%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BRK.B. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BRK.B currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, BRK.B is holding a Forward P/E ratio of 20.33. For comparison, its industry has an average Forward P/E of 15, which means BRK.B is trading at a premium to the group.
Also, we should mention that BRK.B has a PEG ratio of 2.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BRK.B's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.